Welsh Affairs

Debate between Stephen Kinnock and Stephen Crabb

Thursday 2nd March 2023 Commons Chamber

[Stephen Crabb]

The hon. Gentleman makes an important point. He is exactly right, and I encourage him to follow the output of the Welsh Affairs Committee as we continue our inquiry into broadcasting in Wales. He may have seen a few weeks ago that Netflix chose to use the incredibly important forum of the Committee to announce its investment in its first Welsh-language drama. It is great to see Welsh-language productions from Wales, made in Wales and projecting the Welsh language through new global streaming platforms. It is an opportunity to project Welsh culture and identity, and perhaps a challenge and even a threat to some of the traditional broadcasters. Overall, he alludes to a healthy picture.

I referenced our visit to north America, where there are huge opportunities. I often think that we perhaps make too much of the slightly odd colonial experiment in Patagonia and not enough of the Welsh diaspora that moved to the US, particularly in the late 18th and early 19th century. Welsh people were at the heart of the US industrial revolution experience. When the Welsh Affairs Committee was in Washington in January, we had the opportunity to visit Capitol Hill and were hosted by the Friends of Wales Caucus in Congress.

I thank Congressman Morgan Griffith from Virginia for welcoming us and for the fascinating discussion that we had in his office about the links between our nations. He has people in his district with strong Welsh heritage, and there are towns and villages in his district and throughout Pennsylvania that bear the names of Welsh towns and villages that we are familiar with. That means that there are opportunities for us. Sometimes, I think that the Irish and Scottish make far more of their diaspora and use it more intelligently to further strategic and economic objectives than we do. We were looking at that as a Committee. I pay tribute to Ty Francis for his work in creating New York Welsh, a diaspora community in New York City, and for his further work to create a network of people with Welsh heritage internationally who all want to feed back and support the growth of Wales back home.

I will conclude on an area where I feel upbeat and optimistic this St David’s day—energy. Wales has an important role to play in helping the UK to meet energy security objectives and to make strides towards achieving net zero. Wales already has an enormous heritage when it comes to energy. In my constituency, Milford Haven has a history of 50 years of oil and gas processing and import. The opportunity in front of us is the launch of a brand-new industry—floating offshore wind. We have made great strides with fixed-bottom offshore wind in this country, particularly on the eastern seaboard of the UK. But with floating offshore wind, we can have bigger turbines, go to deeper waters where it is windier, get a better load factor on the turbines and create more electricity.

With this new industry we cannot repeat the mistakes of the past. I am looking forward to the remarks by the hon. Member for Aberavon (Stephen Kinnock), who has been working hard on that. If we do this right, we can create new domestic economic opportunities and genuine supply chains here in the UK and in Wales, and centre this new industry around Port Talbot and Milford Haven. It is great that our ports are collaborating on the Celtic freeport bid. It would be wonderful to hear from the Secretary of State when we might hear the outcome of that bidding process. That is the prize in front of us that is worth capturing. Big industrial economic opportunities do not come along that often in Wales, as you know, Mr Deputy Speaker. We have one now and we should seize it.

[Stephen Kinnock (Aberavon) (Lab)]

The right hon. Gentleman is making an excellent speech and some very good points about floating offshore wind. On ensuring that we capture the benefits in Wales, does he agree that a very hard line should be taken with the Crown Estate to ensure that when leasing the seabed, there are clear conditions on the developer to ensure that the manufacturing, the supply chain, the jobs and the skills stay in Wales? We must not make the tremendous and awful mistakes of the past, when we allowed all the supply chains to go overseas.

[Stephen Crabb]

I agree. We need to achieve alignment between the Crown Estate’s leasing auctions, the Treasury’s contracts for difference process and the commitments that developers make. The hon. Gentleman is exactly right that we need to hold their feet to the fire—whether the developers’ or the Crown Estate’s. When companies make promises to create x number of jobs and apprenticeships in his constituency or mine, we want them to be realised. That is the opportunity in front of us.

I have probably exhausted my time. I hope that you feel as upbeat and optimistic as me, Mr Deputy Speaker. We spend a lot of time in this Chamber debating the problems and challenges facing Wales. Sometimes, as a nation we are prone to a little too much negativity. I hope on this St David’s day we can be positive and upbeat, and certainly follow the spirit in which the debate was opened by the hon. Member for Swansea East.

Freeports: Wales

Debate between Stephen Kinnock and Stephen Crabb

Tuesday 21st February 2023 Westminster Hall

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Vickers, and to follow the hon. Member for Aberavon (Stephen Kinnock). I agreed with pretty much everything he said; thankfully, there is no rule against repetition in this place, so I will proceed with my remarks.

First, I would like to put on record my respect and appreciation for my hon. Friend the Member for Ynys Môn (Virginia Crosbie) for securing this important and timely debate, and for the articulate and energetic way she has championed her constituency and a freeport for Wales. In all seriousness, I do not think Ynys Môn has had a stronger voice in the House of Commons in its history as a constituency. I encourage my hon. Friend in the work she does.

Welsh ports have a long history in helping to shape the economic, social and cultural fabric of Wales, as one would expect from a nation with a coastline in the north, west and south. It is three years since the Select Committee on Welsh Affairs examined the proposal for a freeport in Wales. In our report, we noted the positive response from ports around Wales in the written evidence they gave, often citing the potential role of a freeport in regeneration. However, we argued that to make a lasting contribution to the regeneration of the poorest regions and nations of the UK, including in Wales, freeports should be assessed on the economic and social gains they are forecast to bring to local communities. In our view, freeports could help to revitalise the Welsh economy only when they fit with other policies that help Welsh ports and their local communities to thrive.

We noted that many areas of port policy and supporting infrastructure are either devolved to the Welsh Government or are shared responsibilities between the Welsh and UK Governments. We urge the two Governments to work together constructively, especially if a freeport bid is successful in Wales. Crucially, in our report we urged the UK Government not to cap artificially the number of potential freeport sites in Wales, nor to create a Welsh freeport purely for optical or political purposes.

I am pleased we have got to this hopeful and expectant point to hear the outcome of the bidding process for a freeport in Wales. I congratulate the Wales Office on its role in working with the Welsh Government and Ministers across Whitehall to bring us to the point where there could be agreement. There were moments, certainly three years ago, when some of us on the Welsh Affairs Committee were concerned that we might not get to this point, and that the differences in opinion between Welsh and UK Governments would be so great that the freeport policy would not happen in Wales. I am pleased we are at this point; the role the Wales Office played in that was extremely important.

I obviously have a constituency interest. Pembrokeshire is home to the port of Milford Haven, which is one of the UK’s leading energy hubs, hosting a wide range of conventional energy companies such as the Valero oil refinery, the Dragon liquefied natural gas import terminal, South Hook LNG import terminal, the RWE gas-fired power station and the Puma fuel storage site, among others. Those are all located on the Haven waterway. The port of Milford Haven is strategically one of the most important energy hubs in the UK, and the infrastructure it hosts plays a critical role in our national life. Undoubtedly, that port has played an integral role in shaping Pembrokeshire’s local economy through the high-quality job opportunities that those energy companies have provided to local people for many generations.

Those industries are changing, and need to change. The hon. Member for Aberavon made the point that recent events have highlighted the need for our energy mix to diversify, and our demand for home-grown renewable energy has never been greater. Right now we have a unique opportunity to build on that heritage and the excellent skillset in Pembrokeshire to use vacant brownfield sites for the new and exciting energy revolution that is just in front of us.

The port of Milford Haven is in prime position to shift from being one of the UK’s leading conventional energy hubs to being one of the UK’s leading renewable energy hubs. The decarbonisation of Wales’s primary industrial cluster, which stretches from Milford Haven all the way to Port Talbot and further east across the south Wales coast, is the prize in front of us. That decarbonisation has already begun, as we have already heard this morning, and will make a significant contribution to helping the UK meet its net zero targets.

In 2019 the Conservative party stood on a manifesto to deliver at least one freeport in Wales. Fast-forward four years and the necessary steps have been taken to ensure that that ambition becomes a reality. The Welsh and the UK Governments will jointly evaluate bids and select a freeport for Wales in early spring. As we know, for politicians “early spring” can mean anything, but I hope that it means in the days and weeks ahead. We have a prime opportunity, if the Government want to take it with St David’s Day just around the corner, for a really significant announcement that would make a difference for people and communities across Wales. We therefore expect to receive confirmation of the winning bid imminently.

I want to briefly put on the record why I think the Celtic freeport bid should be the frontrunner in this race—it is a competitive process. The Celtic freeport bid is a private-public sector partnership led by Associated British Ports, Neath Port Talbot Council, Pembrokeshire County Council, and the port of Milford Haven. The bid has been backed by prominent businesses across Wales as well as numerous MPs from all parties and Members of the Senedd as well, demonstrating the evolution of a collective consensus that is necessary to drive forward the Celtic freeport vision. The bid goes far beyond party political lines, with a broad recognition of the wide-ranging benefits that the Celtic freeport will bring to Pembrokeshire, Port Talbot and the whole of south Wales. That is why I have been working so closely with the hon. Member for Aberavon to help build momentum behind that important bid.

It was encouraging to see so many MP colleagues from across different parties attend our recent drop-in event to hear more about the exciting potential of the bid. I was delighted that so many of my colleagues put pen to paper that day to confirm their backing for it. If we are awarded freeport status, more than £5 billion of new investment will be unlocked, potentially creating more than 16,000 new high-quality green jobs across the south and west Wales economy. Furthermore, securing freeport status across the key sites of Milford Haven and Port Talbot will enable them to begin their journey towards energy diversification through, as we have already heard, the emergence of the new floating offshore wind technology.

As I explained in my debate on floating offshore wind in this Chamber last October, offshore floating wind represents a major, exciting new opportunity for the UK to tackle pressing issues: jobs and skills regeneration, wholesale energy prices, energy security, levelling up and, as I have said, net zero targets. The UK Government have set ambitious targets to deliver floating offshore wind in the years ahead, and both Milford Haven and Port Talbot have already been identified by leading developers as key locations for the early development of this new industry for Wales. Hopefully Milford Haven will be a hub for operations and maintenance, with Port Talbot at the forefront of assembly and manufacture.

The potential to unlock a UK market in the construction, maintenance and operations of floating offshore wind projects could be worth more than £54 billion in the decades ahead. That is the prize in front of us. It is clear that the establishment of a freeport across the sites at Milford Haven and Port Talbot will enable this exciting renewable vision to flourish. The war in Ukraine, coupled with rising energy prices, has underlined the urgent need for the UK to become less energy dependent. The need to diversify our energy mix has never been more apparent as the dial shifts to the development of green, sustainable energy. Floating offshore wind represents the next big renewable opportunity for Wales. With the expertise and heritage in the Milford Haven waterway, and the skillset and industry in Port Talbot, these two locations at the heart of the Celtic freeport bid are ideally suited to supporting the industrial-scale deployment of floating offshore wind.

Freeport status would be hugely advantageous in that process as it would allow this new green vision to flourish, with the tax breaks, simplified customs procedures and streamlined planning processes helping to ease the transition from conventional to renewable energy. In turn, there is a potentially enormous investment to be unlocked in the supply chain, and that is the prize here. The UK has made enormous progress in the fixed-bottom offshore wind industry and has taken strides in expanding that deployment, but the one thing that did not happen in was we did not create strong domestic content for the UK. We did not capture a bigger share of the full economic value of offshore wind as we should have done. We now have the opportunity with floating offshore wind to get it right and to deploy these structures to give us clean energy in a way that creates long-term jobs and training opportunities in our communities.

[Stephen Kinnock]

The right hon. Member is making an excellent speech. Does he agree that it is vital that the Crown Estate sets up a licensing process that guarantees localised supply chains and that there should be penalty clauses in the process, so that developers will be held to account?

[Stephen Crabb]

The hon. Gentleman makes a crucial point. He is absolutely right that the Crown Estate must ensure those contracts have teeth. That will be crucial to ensuring that developers deliver on their commitments because, as he knows, it is one thing for them to speak to us politicians and tell us about all the good things they will do in our communities, but actually making sure they do them when push comes to shove is another.

The other part of the equation is ensuring that we get the contracts for difference right and ensuring that the financial architecture around floating offshore wind is the right one to enable that investment in the UK and Welsh economies. Of course, there is a potential first-mover advantage waiting for the nation that makes the biggest and earliest strides to deploy floating offshore wind at an industrial scale. The Welsh Affairs Committee was recently in the US and met with a floating offshore wind developer there who was also looking to develop in the Celtic sea. They have secured seabed leases off the coast of New York and in California. There is a global race to be the first nation to see serious industrial-scale deployment of offshore wind, and I believe it should be Wales and the UK that does that.

Floating Offshore Wind Projects

Debate between Stephen Kinnock and Stephen Crabb

Tuesday 18th October 2022 Westminster Hall

[Stephen Crabb]

I will mention freeport opportunities a bit later, but my right hon. Friend is exactly right. So often when people talk about freeports, it is in the context of an answer looking for a question; what we have in Milford Haven—together with Port Talbot, I might say—is a solution. It is something that will help facilitate a new industry, and if we can use the freeport process to help support that—I am looking towards the Minister—then that would be excellent indeed.

[Stephen Kinnock (Aberavon) (Lab)]

The right hon. Gentleman is making an excellent speech, and I congratulate him on securing the debate. Building on his point about freeports, one of the key advantages of our freeport bid is that it is in synergy with the floating offshore wind opportunity. That will deliver a huge amount of added value through the manufacturing opportunities and long-term sustainable job opportunities that will come out of it, so the freeport offer is a strategic offer, not just transactional.

[Stephen Crabb]

As is typical, the hon. Member has gone right to the heart of the matter. Floating offshore wind is going to happen in a big way in UK waters— I absolutely believe that. The challenge that we need to get our heads around is how much real economic value and content can be captured and secured for the UK. The hon. Gentleman is exactly right that a collaborative bid between Port Talbot and the port of Milford Haven provides a potential framework to allow that industrialisation and capturing of domestic content to happen.

FLOW presents an important economic opportunity for the whole of the UK—for ports, industry and energy infrastructure, and by driving up investment and regional and national growth, as well as increasing the numbers of skilled jobs and career opportunities. The levelling-up opportunities are enormous: tens of thousands of people are already working in the offshore wind industry and supply chain in places such as Hull and Hartlepool. That is the kind of domestic content and supply chain opportunity that we want to deliver for Wales and the whole of the Celtic sea region. With large-scale projects in the Celtic sea perhaps five to 10 years away, there is an opportunity now for the development of the appropriate infrastructure and supply chain capability, which will deliver significant local opportunities in the region and, in turn, drive regional economic growth.

While we are talking about Port Talbot, I should say that I was excited to see RWE recently announce a new partnership with Tata Steel in the constituency of the hon. Member for Aberavon (Stephen Kinnock). That will explore how steel manufactured in south Wales could be used for floating wind projects, which is exactly the kind of innovative thinking that we need to achieve everything to which we aspire.

I hope to have outlined the scale of the vision and opportunity in front of us. It is ambitious and exciting, and in my view it is achievable. There is enormous private sector interest. However, along with the scale of the opportunity, there is an enormous delivery challenge. Ensuring that we have the appropriate offshore and onshore capabilities to deliver this is a big and complicated challenge. The 5 GW by 2030 target is ambitious. The industry is confident that it can respond to the challenge, but it will require a lot of work. Think about the sheer scale of what we are talking about: hundreds and hundreds of enormous new turbines being manufactured and towed out to sea. We have also to think about all of the onshore infrastructure around the turbine: the port infrastructure, new grid capacity, new grid connections, all the supply chain work that we have talked about, the financial architecture around it—contracts for difference—and, of course, the planning regimes in which the projects operate.

Projects cannot happen without the underpinning physical infrastructure—grid and ports—and the right policy architecture. Creating the right frameworks will require a lot of collaboration between the public and private sectors.

[Stephen Kinnock]

The right hon. Gentleman is absolutely right about all of the wraparound and complexity. One thing he may have mentioned—I may have missed it—is maintenance and servicing. Once the structures are in place, they require regular maintenance and servicing, which in itself is a huge employment-generating opportunity.

[Stephen Crabb]

The hon. Gentleman is exactly right about the operations and maintenance role. That is not just a job creator; they are valuable jobs. There is real economic value in those support services.

I come back to the delivery challenges around this big, complicated opportunity. The first challenge relates to leadership and co-ordination. As with the early development of fixed-bottom offshore wind, the support of the UK Government will be crucial in driving forward the political, regulatory and financial support frameworks that are needed to maximise the flow opportunities. I welcome recent positive statements by the Government, but there needs to be much more visible engagement from Ministers when it comes specifically to the Celtic sea opportunity. I have been impressed by the leadership that the Crown Estate has shown, and the work that it is doing to create robust frameworks around the tender process and environmental protections. However, there is a role for UK Government, over and above what the Crown Estate is doing, to push forward the Celtic sea programme. That role starts with setting credible, ambitious targets. We are in a relatively strong position when it comes to the UK’s clear pipeline of offshore projects, which is backed up by a firm commitment from Government. That is critical in increasing investor confidence in the UK market, but Ministers should be going further, perhaps by setting supplementary, longer-term targets to strengthen signals to investors and developers. Ministers should be clear about the UK’s intentions to scale up the sector rapidly in the coming 10 years.

The next area of challenge is getting the right financial architecture in place: a market environment that encourages price competition and industrial development. The contracts for difference have been incredibly effective at reducing the costs of renewable energy projects by reducing wholesale price risk, but the weakness of the structure of the CfD auction scheme is that it considers only the price of projects, and not wider industrial and economic considerations or future cost reductions. The Government should look to reform the CfD system to create a premium or incentive that recognises projects that make substantial commitments to industrial and economic development in the UK and to innovation in the UK. The aim of these reforms should be focused on fostering a market environment in which investment, innovation and economies of scale are incentivised. Consideration should also be given to what form of support can be provided to combined FLOW and hydrogen production projects, which cannot really be assessed alongside conventional FLOW from a cost perspective. I mentioned the work that RWE is doing in Pembroke, looking at the role of floating offshore wind to support hydrogen development, and there probably needs to be a different way of looking at that in terms of price support.

At the heart of the infrastructure challenge are ports. Floating offshore wind will require a lot of port infrastructure. No port close to the Celtic sea is currently ready to handle the key activities for deploying floating offshore wind, but we have a window of opportunity now to address this and ensure that the economic value of deploying these vast structures can be captured for the UK. The FLOWMIS—floating offshore wind manufacturing investment scheme—funding that the Government are making available will help. As far as I am aware, the Government have not yet announced how that money will be used, but a good chunk, if not the lion’s share, should be devoted to supporting the development of the Celtic sea industry.

Given the targets that we are looking to achieve and the scale of activity that will be required, there will be enormous opportunities for all ports across south-west England, Wales and Northern Ireland. There is a clear starting point, and we have already discussed it: the ports of Milford Haven and Port Talbot. Independent reports from the likes of ORE Catapult and FLOW developers have identified Pembroke Dock in the port of Milford Haven and Associated British Ports at Port Talbot as potential anchor ports for floating offshore wind. However, without collaboration and significant investment at both ports over the next decade, the vast majority of the potential £4 billion of benefits could simply go overseas. A combined, dual port solution, with close proximity to the Celtic arrays, has enormous potential to accelerate the deployment of floating offshore wind and increase prospects for UK Government generation goals.

[Stephen Kinnock]

The right hon. Gentleman is being very generous in giving way, and I thank him for that. He is right that port infrastructure is vital, but another key part of our infrastructure is the national grid. Does he agree that there are real concerns about the capability of the national grid to deliver the power that we need from offshore wind, and that the UK Government need to get round the table with National Grid and Ofgem to make that happen?

[Stephen Crabb]

I swear I have not shared a copy of my speech with the hon. Gentleman, but he anticipates the next section extremely well. I will just finish this point about the freeport bid. I am not expecting the Minister to comment—it is a live bidding process—but as I said on the Floor of the House yesterday in Levelling Up, Housing and Communities questions, I hope that Ministers will look closely at what is coming forward from Milford Haven, Pembroke Dock within that port, ABP at Port Talbot and the two relevant local authorities, because it is genuinely exciting and represents something different. We should not get hung up on freeport labels; it is about doing something innovative and collaborative that can help to unleash the full economic potential of this opportunity.

Let me get on to grids, before I bring my remarks to a close. The hon. Member for Aberavon (Stephen Kinnock) is exactly right: potentially even more challenging than delivering port upgrades is achieving a serious step change in the way we increase grid capacity and make available new grid connections here in the UK. The planning and consenting processes are ridiculously slow and difficult—they are not fit for purpose. We on the Welsh Affairs Committee in recent months have been taking evidence on the grid infrastructure in Wales. Our report on that will be coming out soon, so I will not pre-empt that. I was pleased in the evidence we took to hear about steps that are being taken by Government to reduce the offshore wind consenting times, but the truth is that we need to see far more urgent action from Government to address grid capacity. The danger is that developers will increase their capabilities and be able to construct and deploy large-scale renewable energy infrastructure way ahead of the planning process, and that cannot be acceptable. We need more anticipatory investment so that new grid networks are built in time for those major new sources of generation and for demand. We could talk about other planning challenges: in the Welsh context, we have the devolved body Natural Resources Wales. Developers are concerned that Natural Resources Wales should be fully equipped to be able to handle the volume and complexity of the planning jobs that they will be asked to do, to assess the impact on seabeds and things like that.

Floating offshore wind represents a major, exciting opportunity for the UK to tackle a number of critical issues: wholesale prices, energy security, job generation, levelling up and net zero. It is an exciting package. Floating offshore wind presents a compelling answer to all those challenges. The key challenges for us to consider are the risks and potential difficulties around delivery, and achieving the scale of offshore and onshore capabilities and systems that will be required just a few years from now. I look forward to hearing from colleagues and the Minister.

Support for the Welsh Economy and Funding for the Devolved Institutions

Debate between Stephen Kinnock and Stephen Crabb

Tuesday 5th July 2022 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

It is a real pleasure to follow the hon. Member for Ceredigion (Ben Lake), and I congratulate the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) on securing this important debate.

The people of Wales need answers from this Westminster Government about the cost of living crisis that they are facing right now, because the Conservative Government’s response to the crisis has been deeply disappointing. They are out of touch, out of ideas and out of excuses. They delayed bringing in the windfall tax on the energy giants; we in the Opposition had to drag that policy out of them. Meanwhile, they also refused to deliver an emergency Budget and they are the only Government in the G7 who are raising taxes during a cost of living crisis.

Hard-pressed households and businesses need support in these profoundly challenging times. Labour has a plan to tackle the cost of living crisis. We would cancel the national insurance contributions rise, which comes at the worst possible time and will do nothing to fix the Tory’s social care crisis. We would cut VAT on home energy bills. We would cut the red tape that has been created by the Prime Minister’s botched Brexit and we would implement policies to buy, make and sell more in Britain, particularly through commitments such as the £3 billion green steel fund to support our steel industry as it transitions to net zero.

For an object lesson in the difference that a Labour Government in Westminster would make, we need just to look at what the Welsh Government are delivering for Wales. Welsh Labour has delivered a £51 million household support fund, which was announced in December 2021. That package of support is targeted at people who need help the most. The Welsh Labour Government have doubled the winter fuel support payment to £200, which is already helping almost 150,000 people across Wales. Free prescriptions continue in Wales, helping households to keep more of their hard-earned money, whereas prescriptions in England currently cost £9.35 an item. The average band D council tax bill in England is £167 more than it is in Wales, totally undermining the argument made by the hon. Member for Clwyd South (Simon Baynes). Even with the UK Government’s council tax rebate, which was just announced, households in Wales still pay £17 less than in England. Wales already has the £244 million council tax reduction scheme, which helps more than 270,000 households with their council tax bills. Some 220,000 households in Wales pay no council tax at all, thanks to the Welsh Labour Government’s interventions. The Welsh Labour Government have committed to providing free school meals to all primary school pupils. An extra 196,000 primary schoolchildren will benefit from that offer.

All that has been underpinned by a Welsh labour market that is significantly stronger than the UK labour market. Welsh unemployment levels are lower than those in the UK at 3.5%.

[Stephen Crabb]

I will challenge the hon. Gentleman on his complacency about the labour market figures in Wales. Yes, in Wales, unemployment—in its narrow definition—is lower than the UK average, with 53,000 jobseekers in Wales, but more than 440,000 working-age people are economically inactive in Wales. That is the major employment and welfare challenge of our time, and the figure is worse than the UK average in a Welsh context.

[Stephen Kinnock]

Perhaps if the UK Government had a proper industrial strategy that would grow our manufacturing base, rather than having allowed it to go to the wall since 2010, we would be creating high-paid jobs and adding value to our economy and productivity. We face a productivity crisis in this country, created by successive Conservative Governments since 2010.

There has been a strong performance by the Welsh Government, who have made a commitment that

“no one would be held back or left behind…in a recovery that is built by all of us.”

We have seen the creation of the young person’s guarantee—the offer of work, education, training or business start-up help for all under-25s—and ReAct Plus, which will provide practical and bespoke employment support as unique as the person looking for work. The ReAct Plus programme will offer up to £1,500 for training, £4,500 to help with childcare costs and £300 for travel costs. Welsh Labour is also investing £8 million to continue employment services, helping people recovering from physical and mental ill-health and substance misuse to get back into work and, crucially, remain in work. Through the young person’s start-up grant, Welsh Labour will invest £5 million to support 1,200 young people to start their own business.

That is what Labour in power looks like: a Welsh Labour Government backing Welsh workers, Welsh families and Welsh businesses to thrive, protecting our people from the worst excesses and failures of this Tory Government, who are letting people down with their incompetence and indifference.

Occupied Palestinian Territories

Debate between Stephen Kinnock and Stephen Crabb

Thursday 24th September 2020 Commons Chamber

[Stephen Kinnock]

We certainly welcome any steps towards peace and conflict resolution, but we should be realistic about what the so-called Abraham accords really signify. The reality is that the United Arab Emirates and Israel have never been at war with each other. They have pre-existing and long-standing relations. Indeed, they have co-operated on military matters, in counter-revolutions, and in coups in many of the Arab League states. We should be realistic that this is really more the formalisation of pre-existing relations, rather than something new. Nevertheless, it is to be welcomed.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The hon. Gentleman has made some important and strong points in his opening remarks. May I bring him back to the reference he made a few moments ago to the signing of the Oslo accords, and their failure to result in the era of peace that so many people had hoped for? Straight after mentioning Oslo, he talked about settlements—almost implying that it was the issue of settlements that meant that the aspirations behind Oslo were never realised. I encourage the hon. Gentleman to read Bill Clinton’s account of the peace negotiations and many other accounts to see exactly why peace was not struck when there was an opportunity; it was not the Israelis who walked away from that opportunity.

[Stephen Kinnock]

I agree that opportunities have been missed on all sides—there is no doubt about that —but the reality is that the constant feature of everything that has happened since 1993 has been the expansion of the settlements, which are a flagrant breach of international law. Once we start to erode the foundations of international law on which all the negotiations are based, they are rendered effectively meaningless. We need to bear that in mind as we look back on what has happened since 1993, but it is also vital that we look to the future with hope and optimism.

It is against that backdrop that President Trump and the Prime Minister Netanyahu have come forward with their so-called deal of the century. This is not a deal. It is not a plan. It is not even a starting point for talks. It is a proposal that is fundamentally flawed because it has no basis in law. It is a land and power grab that would mean Israel seizing around 40% of the west bank, with full military and security control over the Palestinian people and their resources. Which Government, in their right mind, would ever agree to such terms? Why would the Palestinian Authority ever enter into talks on the basis of a document that effectively legitimises attempts to destroy any chance of an independent sovereign Palestine?

--- Later in debate ---

[Stephen Crabb]

My hon. Friend is exactly right: it is about leadership. If the history of this region teaches us anything, it is that peace comes about not through fine words alone, but through courageous action. That has been underlined again in the last few weeks by those decisions by Bahrain and the UAE.

I referred to our trip to Israel and the west bank in February, just before lockdown. We sat with Dr Saeb Erekat, who still holds the title of official chief negotiator on the part of the PLO, and discussed prospects for peace with him. When the hon. Member for Aberavon talked about the Trump deal being no basis for negotiation and not a starting point for any kind of discussion, I closed my eyes and heard the words of Dr Saeb Erekat, because that is exactly what he said to us then. The point we made to him was that it requires the Palestinian leadership not to continue missing opportunities, as they have done in the past, but to seize an opportunity for a basis of discussion and step out of old ways of thinking and old paths that lead time and again to a block.

[Stephen Kinnock]

I am glad that Dr Erekat and I are aligned; I can guarantee that I have not discussed it with him. How is it possible to have talks on a basis that breaks international law?

[Stephen Crabb]

There is a lot in the Trump plan that I am sceptical about, and the viability of a future Palestinian state is important for me as I reflect on these issues, but I believe first and foremost in the power of sitting down and talking. The intransigence and refusal to engage on the part of the Palestinian leadership is a huge roadblock to progress in the region. That is why I reiterate my point about the need for leaders to show leadership. It is not just about the job title. It is about taking brave decisions to sit down and talk and break out of old modes of thinking and old patterns of behaviour.

My hon. Friend the Member for Bury South (Christian Wakeford) referred to a tech start-up company that we visited in Ramallah a number of months ago. The young people we met in that company look at what has happened in the tech sector in Israel, which has seen enormous growth and been a source of prosperity for Israel, and they want that too—they aspire to be a start-up nation too. They have every right to aspire to that, but they are also aware that their leadership has let them down on so many occasions. When we debate these issues in the Chamber, it is important that we think about not only the words of the Palestinian leaders but the Palestinian people themselves and what they aspire to.